GBP/JPY is moving within corrective subwave B (colored magenta in the chart) that is part of impulse wave C of larger degree (colored royal blue in the chart). The former wave consists of A-B and C subwaves, subwave C is still developing - colored orange red in the chart. The targets of the upmove are Fibonacci retracements of 137.03-130.89, 134.24-130.89 and expansions off 130.89-132.71-131.21, 131.21-132.48-131.57.
Resistances:
- 132.84 = objective point (OP)
- 132.96 = .618 retracement
- 133.03 = OP
- 133.24 = .382 ret
- 133.62 = expanded objective point (XOP)
- 133.96 = .50 ret
- 134.15 = XOP
- 134.68 = .618 ret
If the price reverses down the immediate supports will be Fibonacci retracements of 122.49-139.93, and expansions off 139.93-132.90-137.03, 137.03-130.89-132.71.
Supports:
- 130.00 = objective point (OP)
- 129.15 = .618 retracement
- 128.92 = contracted objective point (COP)
Overbought/Oversold
Assuming that the medium term trend is down but a correctiwe wave is under way it's preferable to stand aside until the correction is over or try long positions when the Detrended Oscillator gets below the zero level (current prices) or into the oversold area (15-25 pips below the current prices).
Read more on how to apply Fibonacci studies to calculate price targets.
